1st February 2017
A number of key changes to saving schemes and allowances are due to come in that employers and employees should be aware of.
WEALTH at work, a leading provider of financial education in the workplace, supported by guidance and advice, have outlined below some of the key changes coming up.
Jonathan Watts-Lay, Director, WEALTH at work, comments; “Life insurance, mobile phones, cars, parking and medical insurance are just some of the benefits which from April, will no longer be available through Salary Sacrifice. Employers will have to re-think the financial benefits offered in the workplace and ensure employees understand the changes and the financial impact it may have.”
Watts-Lay comments; “Whether employees are better off with the old or new scheme depends on how much they earn, how much they spend on qualifying childcare and how old their children are. There will be no NI saving under the new system, therefore employed parents with lower childcare cost could be worse off.”
Watts-Lay comments; “Anything that encourages employees to take financial advice when making such importance decisions about their retirement has to be a good thing. In fact, our recent Pension Changes Survey results 2017 show that only almost half (48%) of employers believe that their employees are not aware of the various retirement income options available to them at-retirement – the need for financial advice couldn’t be clearer.”
Watts-Lay comments; “The introduction of the LISA raises some important questions for the future such as; will it include salary sacrifice or not and will it accept employer contributions? We already see many companies giving employees a percentage of their salary to buy ‘benefits’ so could this be a method of funding the LISA in the future? We’ll have to wait until the specific rules are defined but this is definitely one to watch.”
He concludes; “Company perks are no longer just about pensions and a well communicated, flexible and relevant benefits package can improve an employees financial wellbeing. With so many options now available, the provision of financial education, guidance and advice in the workplace is essential for employees to understand what can be achieved through workplace saving.”
Further coverage can be found in: Your Money, Personnel Today, Employee Benefits, Reward and HR Director.
For more information, please contact us.
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